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HRM in a Global Environment

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-Foreign countries can provide a business with new markers -Companies setup companies overseas because of lower labor const -Technology makes it easier for companies to spread work around the globe -Global activities are simplified and encouraged by trade agreements among nations -When organizations operate overseas, they hire a combination of parent-country, host-country,and third-contry nationals

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Transnational HRM System

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-Makes decisions form a global perspective -Includes manages from many countries -Based on ideas contributed by people representing a variety of cultures Decisions that are the outcome of transitional HRM system balance uniformity with flexibility

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Factors Affecting HRM in International Markest

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1. Culture 2. Education 3. Economic System 4. Political-legal Systems

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Culture

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-Can greatly affect a country;s laws. -Influences what people value, so it affects people's economic systems and efforts to invest in education -Often determines the effectiveness of various HRM practices -Characteristic influence the way members of an organization behave toward various HRM practices. -Strongly influence the appropriateness of HRM practices -Differences can affect ho people communicate and ho they coordinate their activities.

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Power Distance

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Concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal.

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Long-term/Short-term Orientation

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Suggests whether the focus of cultural values is on the future (long term) or the past and present (short-term)

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Education and Skill Levels

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-Companies with foreign operations locate in countries where they can find suitable employees -The educations and skill levels of country's labor force affect ho and the extent to which companies want to operate -In countries with a poorly educated population, companies will limit their activities to low-wage jobs

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Economy System

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-The economy system provides many of the incentives or disincentives for developed counties with great wealth, labor cost are relatively high. This impacts compensation and staffing practices -Income tax differences between countries make pay structures more complicated when they cross national boundaries

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Political and Legal system

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-The country's laws often dictate the requirements for HRM practices: training, compensation, hiring, and layoffs. -An organization that expands internationally must gain expertise in the host country's legal requirements and ways of dealing with its legal system -Organizations will hire one or more host-country nationals to help in the process

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Human Resource Planning in a Global Economy

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-Planning decision about how many employee are needed for each international facility -Decision where to locate include considerations such as the cost and availability of qualified workers -These considerations must be weighed against financial and operational requirements -Other location decision involve outsourcing.

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Criteria for selection of Employees for foreign Assignments

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1. Competency in the employee's area of expertise 2. Ability to communicate verbally and nonverbally in the foreign country 3.Flexibility, tolerance of ambiguity, and sensitivity to cultural differences 4. Motivation to succeed and enjoyment of challenges 5. Willingness to learn about the foreign country's culture, language, and customs 6. Support from family members

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Emotional Cycle Associated with a Foreign Assignment

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Honeymoon-Cultural Shock-Recovery-Adjustment

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Training and Developing a Global Workforce

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-Training and development programs should be effective for all participating employees, regardless of their country of origin -When organizations hire employees to work in a foreign country or transfer them to another country, the employer needs to provide employees with training in how to handle the challenges associated with working in a foreign country.

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Delivering Training in other Countries

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1. Know your goals-clarify what overseas training is supposed to achieve 2. Consider international differences among trainees when developing the training plan 3.Keep an eye on quality-overseas trainers should meet the same quality standards as training the headquarters 4. Be clear about standards for confidentially and intellectual property 5. Know the local laws that affect training programs

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Cross-Cultural Preparation

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-This is training to prepare employees and their family members for an assignment in a foreign country. -The training covers all three phases of an internal assignment: *Preparation for departure *The assignment itself *Preparation for the return home

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Performance Management Across National Boundaries

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When establishing performance management methods in other countries: *Legal requirement *Local business Practices *National cultures Differences may include: *Which behavior are related *How and extent to which performs the rating *How feedback is required

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Compensating an International Workforce

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-Market pay structures can differ substantially across countries in terms of both pay level and the relative worth of jobs. -This creates a dilemma for global companies: *Should pay levels and differences reflect what workers are used to in their own countries *Should pay levels and differences reflect the earnings of colleagues in the country of the facility, or earnings at the company headquarters -Decisions about benefits must take into account the laws of each country involve, as well as employees' expectations and values in those countries

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International Labor Relations

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-Labor relations on an international scale involves differences in laws, attitudes, economic systems, and differences in negotiation styles -Organizations establish overall polices and goals for labor relations, overseeing labor agreements, and monitoring labor performance -The day-to-day decisions about labor relations are usually handled by each foreign subsidiary

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Managing Expatriates: Selecting Expatriate Manages

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-Expatriate manages need technical competence in the area of operations -In addition, many other skills are necessary to be successful in an overseas assignment: *Ability to maintaing a positive self-image and feeling of well-being *Ability to foster relationships with host-country national *Ability to perceive and evaluate the host country's environment accurately

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Topics for Assessing Candidates for Overseas Assignments

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*Motivation *Health *Language ability *Family Considerations *Resourcefulness *Adaptability *Career Planning *Financial

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Managing Expatriates: Preparing Expatriates

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-Pre-assignment site visit -Job orientation -Country orientation -Culture orientation -Language training -Compensation/taxes/counseling -Housing counseling -Health care/school/shopping/recreation counseling -Counseling by returning expatriates -Local sponsorship from host country

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Balance sheet approach

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An approach to international compensation that provides international employees with a compensation package that equalizes cost differences between the international assignment and the same assignment in the home country of the individual or the corporation. This approach involves an effort by the global organization to ensure that its expatriates are "made whole"

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Repatriation

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The process of preparing expatriates to return home form foreign assignment. -Communication: the expatriate receives information and recognizers changes at home while abroad -Validation: giving the expatriate recognition for the overseas service when this person returns home

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High-Performance Systems

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Right combination of people, technology, and org. structures that makes full use of org's resources and opportunities in achieving its goals.

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Learning Organization

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Organization that supports lifelong learning by enabling all employees to acquire and share knowledge

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Continuous Learning

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Each employees and each groups ongoing efforts to gather information and apply the information to their decisions in a learning organization

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Transaction Processing

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Computation and calculations involved in reviewing and documenting HRM decisions and practices. It includes documenting decisions and actions associated with employee relocation, and training expenses, and enrollment in courses and benefit plans.

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Expert Systems

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Computer systems that support decision making by incorporating the decision rules used by people who are considered to have expertise in a certain area

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HR Dashboard

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Display of a series of HR measures, showing HR goals and objectives and progress toward meeting them

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Human Resource Management Audit

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Formal review of outcomes of HRM functions , based on identifying key HRM functions an measures of a business performance

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Transaction Processing

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Computations and calculations involved in reviewing and documenting HRM decisions and practices. These include documenting employee relocation, payroll expenses, and training course enrollment

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Decision Support Systems

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Computer software systems designed to help managers solve problems by showing how results vary when the manager alters assumptions or data-usually include a "what if " feature

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Elements of a High-Performance Work System

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1. Information System 2. Organizational Structure 3. Task Design 4. People (Selection, training, and Development) 5. Reward Systems

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Organizational Structure

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The way the organization groups its people into useful divisions, departments,and reporting relationships.

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Task Design

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determines how the details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities

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People

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Well, suited and well prepared for their jobs.

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Reward Systems

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contribute to high performance by encouraging people to strive for objectives that support the organization's overall goals

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Information System

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Modern information systems have enabled organizations to share information widely.

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New Technologies

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Applications of knowledge, procedures, and equipment that have not previously been used.

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Relational Databases

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Store data in separate files that can be linked by common elements.

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Outcomes of a High-performance work system

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1. Higher productivity and efficiency 2. Higher profits 3. High product quality 4. Great customer satisfaction 5. Low employee turnover 6. Reduce absenteeism and turnover

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Reward system includes:

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1. The performance measures by which employees are judged 2.The methods of measuring performance 3. The incentive pay and other rewards linked to success

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Teamwok-Empowerment

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1. Managers must serve in linking and coordinating roles. 2. Provide the team with the resources it needs to carry out its work. 3. Manager should help the team to interact with employees from other departments-make the communication flow in both directions 4. Manager must keep the team updated on important issues and ensure that the team shares information and resources with others who need them 5. Increase empowerment and job satisfaction by including employees in decisions about compensation and by communicating the basis for decisions about pay.

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Key features in a learning organization

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1. It engages in continuous learning-aimed to improve quality 2. Knowledge is shared-training content should be related to the organization's goals 3. Critical, systematic thinking is widespread 4. The organization has a learning culture 5. Employees are value

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Ways to promote satisfaction

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1. Making job more interesting 2. Setting clear and challenging goals 3. Providing valued rewards that are linked to performance in a performance management system that employees consider fair .

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Occupational Intimacy

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Passionate people are fully engaged with something that it become part of their sense of who they are.

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Ethics

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Establishes fundamental principles for behavior, such as honesty and fairness

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Organizational Systems that promote ethical behavior:

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1. Written code of ethics 2. Ethical standards/misdeeds should receive swift discipline as described 3. Provide training in ethical decisions

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Job design

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the way the elements in a job are organized/emphasizing teamwork and empowerment

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Recruitment and selection

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Obtaining the kinds of employees who can thrive in this type of setting. Enthusiastic about and able to contribute to tea works, empowerment , and knowledge sharing. Employers may use group interview, open-ended questions, and psychological tests to find employees who innovate, share ideas, and take initiative

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Employees performance as a process

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1. Each aspect of performance management should be related to organization's goals-Organization goals 2.Individuals' skills and abilities 3. Individuals' behaviors 4. Objective results 5. Situation (organizational culture, economy)

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New technology involves

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Automation and collaboration-using the using equipment and information processing to perform activities that had been perform by people and facilitating electronic communication between people

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Automation has improved HRM

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1. Reducing the number of people to perform a task 2. Free HRM experts to concentrate on ways to determine how human resource management can help the organization meet its goals-technology make this function more valuable 3.

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HRM Applications

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>transaction processing>decision support system>expert system

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Human Resources Information System

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Computerized system that provides current and accurate data for purposes of control and decision making-use of relational databases commonly used of fields for HR database include: name, ss#, Job status, hiring date. Also used to application tracking, or maintaining and retrieving records of job applicants

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E-HRM

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the processing and transmission of digitized HR information especially using computer networking and the internet

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Ways to measure HRM effectiveness

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1. Analyze specific programs or activities-whether it achieved its objectives and whether it delivered value in an economic sense/measures the dollar value of the programs cost and benefits-successful programs should deliver value that is greater than the program's cost. 2. Measure customer satisfaction by conducting SURVEYS

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Unions

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organizations formed for the purpose of representing their members' interests in dealing with employers

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Labor Relations

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field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements

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Craft Union

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labor union whose members all have a particular skill or occupation

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Industrial Union

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labor union whose members are linked by their work in a particular industry

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American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

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association that seeks to advance the shared interests of its member unions at the national level

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Union Steward

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employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced

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Checkoff Provision

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contract provision under which the employer, on behalf of the union, automatically deducts union dues from employee's paychecks

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Closed Shop

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union security arrangement under which a person must be a union member before being hired; illegal for those covered by the National Labor Relations Act

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Union Shop

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union security arrangement that requires employees to join the union within a certain amount of time (30 days) after beginning employment

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Agency Shop

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union security arrangement that requires the payment of union dues but not union membership

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Maintenance of Membership

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union security rules not requiring union membership but requiring that employees who join the union remain members for a certain period of time

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National Labor Relations Act

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federal law that supports collective bargaining and sets out the rights of employees to form unions (NLRA)

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Right-to-Work Laws

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state laws that make union shops, maintenance of membership, and agency shops illegal

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National Labor Relations Board (NLRB)

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federal government agency that enforces the NLRA by conducting and certifying representation elections and investigating unfair labor practices

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Associate Union Membership

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alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining

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Corporate Campaigns

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bringing public, financial, or political pressure on employers during union organization and contract negotiation

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Collective Bargaining

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negotiation between union representatives and management representatives to arrive at a contract defining conditions of employment for the term of the contract and to administer that contract

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Strike

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collective decision by union members not to work until certain demands or conditions are met

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Mediation

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conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution

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Fact Finder

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third party to collective bargaining who reports the reasons for a dispute, the views and arguments of both sides, and possibly a recommended settlement, which the parties may decline

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Arbitration

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conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement

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Grievance Procedure

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process for resolving union-managment conflicts over interpretation or violation of a collective bargaining agreement

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Free riders

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Employees who benefit from union activities without belonging to a union

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Taft-Hartley Act 1947

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Act that provides balance of power between union and management by designating certain union activities as unfair labor practices.

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Landrum-Griffin Act 1959

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Act that protects the rights of union members from corrupt or discriminatory labor unions; also known as Labor-Management Reporting and Disclosure Act (LMRDA)

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Distributive bargaining

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divides an economic "pie" between two sides

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Integrative bargaining

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Looks for win-win solutions, or outcomes in which both sides benefit.

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Attitudinal Structuring

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Focuses on establishing a relationship of trust.

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